Price spikes up on a BO from a prolonged sideways PA. Finds a level where both bulls and bears are active. That is, it forms a range. So, the overall pressure is bullish. A Gap is maintained between the low of the range and the BO point where the spike up began. There are two other bullish gaps on day bars. So context is bullish. The resistance level far to the left, to me, is so far back that it has little significance for the more immediate price action. So bias is up. However, in ranges if they are broad enough, they can be played in both directions. In this case i would take a chance and short when price reaches to or through the top of the range betting on a failed BO of the range. But I would certainly be ready to reverse that if any BO appears to be a successful one (by that i mean a BO PB of the range followed by a BO of the PB) AND all THAT PA holds above the range. That said, the more immediate odds, from a daily standpoint, favor price will trade back down from the high of the range to the bottom of the range BUT THE OVERALL context is bullish and favors a BO north of the range. Sooner or later there will be a BO of the range and the more bars in the range the more it becomes 50/50 the BO can be in either direction. Bottom line i would be looking for a bullish BO of the range but until that happens I would be playing the range in both directions. That is, I would short at the top and long at the bottom of the range. The higher probability (safer) range trade is to go long at the Bottom of the range when a bar reaches that point simply because the OVERALL bias is bullish. But I would be willing to trade the range in both directions until a successful BO occurs.
I would as long as the range is broad enough. Since price trade in ranges most of the time then learning how to trade ranges can be quite profitable while a trader is waiting for a BO abd a trend to start.
you are right mister. There are many ways to skin a cat; there are many ways to profit from the market. different people trade differently. some would long it, some short it, and some stay way from it .
Well the idea here is not pick a direction but to identify the chop and its range....sorry volpri this is your style not mine so I do not mean to interrupt.
Sort of martingale stuff, but good job on playing with risk and ignoring targets, get the max from the current stock rally.